Aurelius Vying with Sprint for Control of Clearwire

April 10, 2013 James Heinsman Hedge Fund News

Aurelius Capital Management has made and offer of $80 million in financing to Clearwire Corporation. This offer is the most recent episode in the story of Sprint’s controversial bid to purchase the approximately 49 percent of Clearwire which it does not already own. Clearwire shareholders are not happy with Sprint’s offer, and have been voicing their disapproval.

Last week Crest Financial Ltd, a minority shareholder of Clearwire, offered $240 in debt financing which could also preclude Sprint’s offer.

Clearwire has said that it will consider the offer from Aurelius and have its board of director’s special committee “evaluate the offer to determine what, if any, action to take.”

Clearview, which is headquartered in Bellevue, Washington, said that with the help it is getting from Sprint it has funding until the end of the year. They are seeking funding to improve its network and to finance their operations.

In January Clearview obtained a preliminary counter-bid from Dish Network, a satellite service provider, for $3.30 per share.

One analyst, Donna Jaegers of DA Davidson, said that this newest proposal from Aurelius offers Clearview more options for the short-term problem of funding, but it will do little to solve the long-term financial issues at Clearview.

“I think (Aurelius) puts the pressure on Clearwire to look at some of the alternative funding, since it seems to be better terms than Sprint’s funding,” Jaegers said.

Aurelius Capital Management, Clearwire Corporation, Crest Financial Ltd, DA Davidson, Dish Network,

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